A Piece of Equipment, Acquired in Year 1, Belongs to Class

question 183

Multiple Choice

A piece of equipment, acquired in Year 1, belongs to Class 7 with a maximum CCA rate of 15%. The income tax rate is 40%. The tax savings (before discounting) from the CCA tax shield were $2,830.50 for Year 3. The after-tax cost of capital is 10%.
- What is the approximate undepreciated capital cost (UCC) balance for the equipment at the beginning of Year 3?

• A) $7,076.
• B) $8,325.
• C) $31,450.
• D) $47,175.

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Definitions:

Meta-Analysis

A technique to review findings in the literature involving the use of specific statistical methods in integrating the findings from different empirical studies.

Narrative Review

A technique for literature reviews in which the author locates and reports on all the studies he or she can find, providing a qualitative summary.

Spatial Abilities

The ability to comprehend, rationalize, and recall the spatial relationships between objects or areas.

Mathematical Abilities

The capacity to perform and understand various mathematical operations, concepts, and problem-solving techniques.